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The table at right represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitive. Total costs include all
The table at right represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitive. Total costs include all implicit opportunity costs. Suppose the market price drops to only $5 per pizza. Part 2 In the short run, this pizza shop Part 3 A. maximize its average profits by shutting down. B. should continue to make pizzas at the $5 price. C. minimize its economic loss by shutting down. D. should continue to make pizzas but raise the price. . . . Question content area right Part 1 Total Hourly Output and Sales of Pizzas Total Hourly Cost ($) 0 5 1 9 2 11 3 12 4 14 5 18 6 24 7 32 8 42 9 54 10 68
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